| Property: | Spanish Mountain Gold Project | |
| Ownership: | 100% Ownership | |
| Symbol: | SPA.TSX.V | |
| Location: | British Columbia, Canada | |
| Share Structure: | Shares Issued & Outstanding: Fully Diluted: | 231,975,957 261,708,008 |
| Market Capital (as of December 31, 2017): | ~$31 million | |
| Management: | CEO and Interim CFO VP of Geology | Larry Yau Judy Stoeterau |
| Board of Directors: | Ian Watson Don Coxe Dale Corman | Christopher Lattanzi James Clare Jim Rogers |
| April 2017 Preliminary Economic Assessment Highlights * | |
|---|---|
| Processing Rate | 20,000 tonnes per day |
| Mine Life | 24 years |
| Total gold production | 2.2 million oz |
| Average Annual gold production | 157,000 oz (years 1 - 5) 142,000 oz (years 1 - 10) 92,000 oz (life of mine) |
| Strip Ratio | 1.4 to 1 (life of mine) |
| Operating Cost | C$ 9.94 / tonne milled |
| Cash costs ($ per ounce) | US$ 469 (years 1 - 5) US$ 555 (years 1 - 10) US$ 595 (life of mine) |
| Initial Capex (including $51 million contingencies) | C$ 507 million |
| Sustaining Capex | C$ 194 million |
| Pre-/ Post-tax NPV (5% discount) | C$ 597 million/ C $482 million |
| Pre-/ Post-tax IRR | 21% / 19% |
| Pre-/ Post tax Payback | 3.67 years / 3.75 years |
PROJECT RETURNS @ DIFFFERENT GOLD PRICE
| Project Economics Sensitivity (Pre-tax) | (Base Case) | ||||||
|---|---|---|---|---|---|---|---|
| $1,150 | $1,200 | $1,250 | $1,300 | $1,350 | |||
| NPV@5% | C$mm | $422 | $510 | $597 | $685 | $772 | |
| Internal Rate of Return (IRR) | 17% | 19% | 21% | 23% | 25% | ||
| Payback Period (from start of production) | Years | 4.3 | 4.0 | 3.7 | 3.4 | 3.2 | |
| LOM Cumulative Free Cashflows including Capex | C$mm | $884 | $1,029 | $1,174 | $1,319 | $1,464 | |
| Project Economics Sensitivity (Post-tax) | (Base Case) | ||||||
|---|---|---|---|---|---|---|---|
| $1,150 | $1,200 | $1,250 | $1,300 | $1,350 | |||
| NPV@5% | C$mm | $352 | $418 | $482 | $539 | $595 | |
| Internal Rate of Return (IRR) | 16% | 18% | 19% | 21% | 23% | ||
| Payback Period (from start of production) | Years | 4.3 | 4.0 | 3.7 | 3.5 | 3.3 | |
| LOM Cumulative Free Cashflows including Capex | C$mm | $754 | $860 | $963 | $1,049 | $1,138 | |
INITIAL CAPITAL EXPENDITURES
| Direct Costs | Initial Capital Cost (C$ Million) |
| Overall Site | 16.6 |
| Open Pit Mining | 97.3 |
| Processing Plant (including Ore Handling) | 140.0 |
| Tailing Management Facility & Water Management | 56.8 |
| Environmental | 12.0 |
| On-Site Infrastructure | 28.6 |
| Off-Site Infrastructure | 14.3 |
| Sub-Total | 365.6 |
| Indirect Costs | |
| Project Indirects | 84.6 |
| Owner’s Costs | 5.8 |
| Contingencies | 51.1 |
| Sub-Total | 141.5 |
| Total Initial Capital Cost | 507.1 |
OPERATING COSTS
| Area | Unit Cost (C$) |
| Mining ($/t mined) | $1.96 |
| Mining ($/t milled) | $4.79 |
| Processing ($/t milled) | $4.01 |
| Tailings ($/t milled) | $0.05 |
| G&A ($/t milled) | $1.09 |
| Total ($/t milled) | $9.94 |
* See Cautionary Note Number 1
** See Cautionary Note Number 2
